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IRA names top insurers in settlement of claims

AAR managing director Caroline Munene presents a cheque to Zamara CEO Sundeep Raichura in May last year. FILE PHOTO | SALATON NJAU | NMG
AAR managing director Caroline Munene presents a cheque to Zamara CEO Sundeep Raichura in May last year. FILE PHOTO | SALATON NJAU | NMG 

Madison Insurance, AAR Insurance and GA Life Assurance have been ranked top in terms of settling claims in liability, non-liability and long-term insurance categories respectively during the second quarter of the year.

Newly released data from the Insurance Regulatory Authority (IRA) shows that Madison settled 571 liability — where the insured is compensating a third party — claims out of the 1,991 claims.

This represents a settlement rate of 28.6 per cent, including new and outstanding claims. Madison rejected 11 claims during the period.

AAR was ranked top when it comes to paying claims lodged by insured parties, with the IRA noting that the firm settled 86.3 per cent of the 252,661 claims it was handling during the period. AAR rejected 1,778 claims.

In the long-term class, which include life and education covers, GA Life Assurance came out on top having settled all 762 claims it received from its clients.

Rejected claims

Fraud, inflated bills and court cases have increasingly seen claims rejected or delayed over long periods of time, making prompt payments a selling point to consumers.

Insurance products such as motor vehicle and life covers are among those affected by the delays in payments or claims rejection.

“Rejected claims may be claims not payable under the insurance contract as per policy document and not necessarily because of fraud,” IRA told the Business Daily in a previous interview.

CIC General Insurance was ranked second after Madison in the liability class, having settled 1,299 of the 5,141 cases lodged, with Kenyan Alliance coming in third after it paid out 19 per cent of the 399 claims presented. CIC #ticker:CIC and Kenyan Alliance did not reject any claims.

In the non-liability class, Jubilee and the Kenyan Alliance came in second and third respectively.

Jubilee #ticker:JUB settled one million of the 1.3 million claims lodged (80.2 per cent) but did not reject any. Kenyan Alliance paid out 727 of the 985 claims and declined 27 of them.

ICEA Lion and the Kenyan Alliance were ranked after GA Life in the long-term category, having respectively settled 97.8 and 92.8 per cent of the active claims during the second quarter of the year.

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